Trade turmoil with Canada and new consumer sentiment data are pulling the industry in two directions. On today’s edition of CBT Live, Ed Garsten, Senior Contributor at Forbes.com, broke down what each one means for automakers and dealers.
While two conflicts unfold north of the border, the U.S., Canada, and Mexico are working to finalize a new trade agreement, all while a dollar-for-dollar trade war persists. This deadlock has halted investments, with automakers and suppliers delaying new factories until clarity emerges. According to Garsten, labor negotiations are intensifying the pressure, and as a result, consumers might ultimately face higher prices.
On the EV side, more than half of U.S. drivers told a new survey they are more open to buying one than they were a year ago. That pattern shows up every time gas prices climb, Garsten said, but it rarely survives the trip to the dealership. Charging and affordability still hold buyers back, even as the price premium over gas vehicles narrows.
Garsten also addressed the ongoing fight to keep Chinese automakers out of the U.S. He said that although he’s old enough to remember a similar fight against Japanese imports like Toyota, he sees the arrival of Chinese vehicles in the U.S. as inevitable. Gartsen affirmed, “Look, in a sense, the Chinese are already here. Their stuff is in our vehicles, whether you like it or not.”
